The CNBC Investing Club with Jim Cramer provides a daily afternoon update called the Homestretch, aimed at informing members just before the last hour of trading on Wall Street. Despite a mixed finish on Friday, stocks saw a strong week overall, with the S&P 500 gaining about 1.75%. However, the latest University of Michigan Survey of Consumers showed a decrease in sentiment and an increase in the one-year inflation outlook, potentially leading to selling pressure. Additionally, comments from Lael Brainard calling for changes to the Tax Cuts and Jobs Act of 2017 may have contributed to the decline in market sentiment.
In terms of sector dynamics, utilities emerged as the top-performing sector of the week, driven by ongoing relief in the bond market, concerns about an economic slowdown, and a growing demand for electricity due to data centers. Financials also performed well, with Club stocks Morgan Stanley and Wells Fargo reaching new 52-week highs. Materials, industrials, and consumer staples also had positive weeks. On the other hand, consumer discretionary was the worst-performing sector, indicating a shift towards value investing in the market.
A highlight of the week was McDonald’s shares rising after reports of the company planning to launch a new $5 meal in the United States. This step towards offering more value to customers could potentially increase sales and drive the stock price higher. Jim Cramer suggested that Starbucks should follow suit by lowering prices to attract more customers and improve same-store sales. Cramer also provided quick insights on Ford, Disney, and other stocks in his charitable trust’s portfolio.
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